The classical model predicts the real GDP will always be
a. rising.
b. falling.
c. equal to its full-employment level.
d. constant.
e. equal to its full-taxation level.
C
You might also like to view...
Which of the following agencies has established standardized accounting principles for reporting corporate earnings?
A) The Securities and Exchange Commission B) The Federal Trade Commission C) The National Accounting Board D) The Fair Reporting Commission
What is the benefit of understanding the income and the substitution effects?
A) The income effect might run in the opposite direction of the substitution effect. B) The income effect always runs in the opposite direction of the substitution effect. C) The income and substitution effects just offset each other, which explains a lot. D) The income and substitution effects are proportional to each other.